There is a Chinese proverb that says: ‘Be not afraid of growing slowly, be afraid of standing still.’ This couldn’t be more true for e-commerce businesses. It really does take time for your business to grow. If you ask yourself why, the answer is quite simple- you need customers, you need their trust and trust is something that takes time. In order for your business to be heard, you need to hear your customers and listen carefully to their needs and painpoints. Did you know that 56% of consumers remain loyal to companies who understand them?
Another interesting fact is that according to Marketing Metrics, the success rate of selling to an existing customer is 60-70%, while the success rate of selling to a new customer is only 5-20%!
And yet again, the reason for this is fairly simple-loyalty. If you address your client’s problems, offer excellent customer experience, react to their feedback, they will be coming back. They will know they have been heard and understood. Everybody loves to feel appreciated and cared for. That’s why the main reason why customers leave is that they get the feeling you no longer care for them. In order to prevent this, you should constantly keep on trying to earn and keep their trust and use the marketing strategy that is relevant to your customer’s needs.
It goes without saying that your business needs new customers too, but not at the cost of the already existing ones. At the end of the day, it’s the ‘old ‘ones who are making your profit. Not only do they keep coming back, but they would also more likely be interested in services through up-selling and cross selling. Bain & Company research found that increasing customer retention rate by just 5% can increase profits by 25 to 95%.
Yet another important thing to bear in mind- reward your loyal customers! It could either be with a special offer for your new upcoming product, or some other VIP ‘treats.’ Show them that you are truly grateful for their loyalty and how much they mean to you.
There are many useful digital tools you can use to help you engage with your customers and see your customer’s behaviour, get feedback and their painpoints. But, that’s a whole new topic so make sure you stick around and follow our new posts and blogs because you don’t want to miss them.